WPP interim results show pre-tax profits of £243.9 million

WPP’s interim results for the first half of 2010 showed pre-tax profits of £243.9 million – up 36%.

Billings were up 8.5% over the six months to 30 June, to £20.333 billion.

Reportable revenue was up by over 3%, to £4.441 billion, and like-for-like revenue increased 2.5% in the first half.

In the US, revenue growth was 5.5%, and 2.5% in the UK. However, Western Continental Europed (including France, Germany, Spain and Italy) was down 0.2% in the first half of the year.

In a statement released today, a WPP spokesperson said about future prospects: “Whilst politicians, journalists, economists, analysts and investors argue about double-dips, inflation or deflation, the most likely scenario is a slow growth “slog”, particularly in the mature geographical markets and traditional media markets, perhaps with inflation and higher interest rates in the long-term.

“In some senses, the recovery will not be over for a long time.

“As the world stabilises and probably avoids a “double-dip” at least, the Group continues to concentrate on its long-term targets and strategic objectives of improving operating profits by 10-15%; improving operating margins by half to one margin point per annum or more depending on revenue growth; improving staff cost to revenue or gross margin ratios by 0.6 margin points per annum or more depending on revenue growth; converting 25-33% of incremental revenue to profit; growing revenue faster than industry averages and encouraging co-operation among Group companies.

“As clients face an increasingly undifferentiated market place, particularly in mature markets, the Group is competitively well positioned to offer them the creativity they desire, along with the ability to deliver the most effective co-ordinated communications in the most efficient manner.”